The $40k per month, in 40 months challenge!

[John D.]

     While travelling with my good friend who is a fellow real estate investor, and giving him a hard time for investing in what I considered mediocre returns in his local market, he really one-upped me.  He gave me the 40/40 challenge  We are challenging each other, in partnership or on our own, to get to $40k per month in passive income via real estate, within the next 40 months.

    I accept his challenge!  We both see opportunities to get 25% cash-on-cash returns year 1, and 50% cash-on-cash returns year 2, investing in properties we can convert from long-term to vacation rentals.  Earning 25-50% compounding and utilizing lots of leverage, I think I can get to $40k per month in the next 3-4 years.

    Writing this post will help me focus on the goal.  As will our mutual friend, who is going to document our progress every week via email to the two of us.  I know I can do this, or come close!

[Ned Carey]

Well that is an amazing goal. I like the idea you focus on cash flow not a number of properties. If you can get there with fewer but more profitable deals that is better. To many people focus on a number of units, and wind up having an incentive to do more bad deals instead of fewer good deals.